Equifax Finance Blog » Equifax Expertshttp://blog.equifax.com
Thu, 30 Jul 2015 12:00:42 +0000en-UShourly1http://wordpress.org/?v=4.2.3How to Get the Most Out of Your Credit Monitoring Producthttp://blog.equifax.com/credit/how-to-get-the-most-out-of-your-credit-monitoring-product/
http://blog.equifax.com/credit/how-to-get-the-most-out-of-your-credit-monitoring-product/#commentsThu, 07 May 2015 12:39:17 +0000http://blog.equifax.com/?p=12476A credit monitoring product can be a great tool to help you stay informed about your credit accounts. It can also alert you when a new account has been opened in your name—which, if you don’t recognize the account, could be a red flag for identity theft.

How to get the most out of your credit monitoring product

Credit monitoring products can help you better track both your credit activity and your credit history. Here are six ways to help you make the most of your credit monitoring purchase:
1. Thoroughly monitor your credit report.
A credit monitoring product usually enables you to monitor your credit reports from at least one of the three credit reporting agencies (CRAs)—and sometimes all three. Take the opportunity to review your credit reports where possible, and make sure all the information that appears is accurate.

If there is any incorrect information, such as names, addresses, or accounts that you don’t recognize, that could be a sign of identity theft. If a thief has used part of your information, such as your name paired with a different address, some incorrect information will likely be added to your credit report. Contact the CRA reporting the information and the lender listed on the account to initiate a dispute.

2. Pay attention to credit alerts.
Credit alerts are one of the most important features of credit monitoring products. If you purchase a credit monitoring product that monitors all three credit reporting agencies, any time that a request is made in your name for credit, such as for a new credit card account, an auto loan or a mortgage, you should receive an alert notifying you of a change to your credit file. You’ll also receive an alert if names or addresses are added to your credit file.

Credit alerts can give you a heads up if someone is attempting to use your information, or if someone is opening up a joint account without your knowledge—provided the creditor reports to the three credit reporting agencies. If someone opens an account in your name but that creditor does not report to the credit reporting agencies, you will not receive an alert. If you do receive an alert, make sure that you respond quickly.

3. Check your credit score.
Some credit monitoring products provide you with regular access to a credit score. Be sure to check your credit score as often as your product allows. This will help you understand how your credit behavior is impacting your credit score, and it will also allow you to document the damage if erroneous information has affected your credit score. In addition, the ability to regularly review your credit score may help you stay informed about the interest rates for which you may qualify when you are applying for loans.

The credit score you receive is for educational purposes, and may not be the credit score your lender uses. Lenders use different scoring models to gauge your risk as a borrower, and some use credit scores that are weighted according to their industry.
4. Ask about privacy monitoring features.
In this digital age, many businesses store your information—sometimes without your knowledge. Some credit monitoring products may help you find out where information is available about you and guide you through the process of removing unwanted information.
5. Place a fraud alert on your credit file.
If you’ve been a victim of identity theft or have had your information stolen in a data breach, you may want to place a fraud alert on your credit report. A fraud alert will encourage lenders to take extra steps to verify your identity when opening new accounts.
6. Review your identity theft insurance and lost wallet protection benefits.
Some credit monitoring products include identity theft insurance which will reimburse certain out-of-pocket expenses in the event you are a victim of identity theft.

Some plans also include lost wallet services that will provide you with assistance in cancelling and reissuing debt cards, credit cards, Social Security documents, and other personal documents.

Staying informed about your credit report and credit score will alert you to suspicious activity. Credit monitoring can also help you find out if someone has used your information to open new lines of credit.

]]>http://blog.equifax.com/credit/how-to-get-the-most-out-of-your-credit-monitoring-product/feed/3What to Know About Pre-Approved Credit Card Offershttp://blog.equifax.com/credit/what-to-know-about-pre-approved-credit-card-offers/
http://blog.equifax.com/credit/what-to-know-about-pre-approved-credit-card-offers/#commentsMon, 27 Apr 2015 21:12:28 +0000http://blog.equifax.com/?p=12378If you’re in the market for a new credit card, a pre-approved offer can be a tempting way to accelerate the process. But with all of the different options, it can be hard to determine if you’re truly pre-approved.

Pre-approved offers, also known as pre-screened offers, are issued based on information in your credit report indicating that you meet basic credit criteria.

1. A pre-approval is an offer.
While an initial screening process does occur for pre-approved offers, this does not mean that the credit card issuer must provide you with a credit card. You will still need to apply in order to get final approval. In this way, a pre-approved credit card offer is more of an invitation than an acceptance letter. It means that the lender has identified you as a potential candidate, is aware of your general credit standing, and wants to make you aware of the credit products offered for people in your credit range.

Offers may also be based on membership in certain groups or relationships with certain companies. For example, frequent travelers may receive solicitations for pre-approved airline credit cards.

After you apply, the lender will determine whether your credit history meets the lending criteria. There’s no guarantee you’ll receive the terms of the original offer, and you could be rejected entirely.

2. A pre-approved credit card offer will not impact your credit score.
The initial screening that lenders use to select pre-approved individuals does not impact your credit score. In fact, your credit score will not be impacted until you decide to apply for the card.

After you submit your application to the lender, the lender will request your credit score. The credit score request is called a “hard inquiry,” and it will remain on your credit report for 24 months. Even if your credit request is denied, the inquiry will still impact your credit score.

While being sent a pre-approved credit offer doesn’t hurt your credit score, every time you apply for a credit card a lender will pull your credit report, which will result in a hard inquiry that will impact your credit score. For that reason, you may want to avoid applying for several credit cards at the same time.

You may want to pull your free credit report through AnnualCreditReport.com or purchase your credit score from one of the three credit reporting agencies (CRAs) beforehand so that you know your general standing and can apply for the type of credit card that fits your credit range. You should be aware that the credit score you purchase may be an educational credit score and may not be the credit score used by your potential lender. That said, the credit score you purchase may help you figure out what type of interest rate you can reasonably expect the lender to offer you.

3. After you apply, you may be approved for terms that are different from the offer.
If you are approved after you apply for the credit card, you may end up with different terms and conditions than what was included in the original offer.

Your credit card APR dictates the interest rate you will pay if you carry a balance from month to month. The higher the APR, the more the credit card will cost you if you carry a balance. Many credit card offers advertise an attractive APR, but the rate you get will depend on your credit history and credit score.

Read over the terms and conditions and, if you are approved, be sure you understand your APR and other financial obligations related to the account. If you do not carry a balance from month to month, then you will not have to pay interest on the credit card, but you may still be obligated to pay other costs, such as an annual fee.

4. You can opt out of pre-approved credit card offers.
If you already have several credit cards or aren’t interested in borrowing, you can opt out of pre-approved credit card offers by calling 1-888-5-OPTOUT (1-888-567-8688) or by visiting OptOutPrescreen.com.

You may also contact the Direct Marketing Association (DMA), which manages an opt-out list for consumers who generally prefer not to receive mail or phone offers. You can sign up for this service on the DMA’s website or download a form to submit by mail. You can also call the DMA at 212-768-7277 to have the form mailed to you.

According to the Federal Trade Commission (FTC), has no effect on your ability to apply for or obtain credit, but you may not receive the terms from pre-approved offers that may be more favorable than those offered to the general public.

5. Shred any unused credit card offers.
Credit card offers may contain sensitive personal information, such as your full name and address. You should shred these documents to protect yourself from identity thieves and scammers, who are known to scavenge dumpsters in order to find documents with personal information. Be sure to lock your financial documents and records in a safe place and destroy them when they are no longer needed.

6. If you are sent a physical card with a pre-approved offer, don’t try to use it.
A bank or lender cannot legally send you an actual credit card in the mail, so if there is a card in the offer envelope, don’t try to use it. This precaution, which was instituted by the Unsolicited Credit Card Act of 1970, is for your protection—to guard you against fraud, payment liability, or credit damage.

Before you respond and apply to a pre-approved credit card offer, be sure you read all the terms and conditions. Also be wary of incurring hard inquiries that could impact your credit score.

]]>http://blog.equifax.com/credit/what-to-know-about-pre-approved-credit-card-offers/feed/36What Is the Date of Last Activity on My Credit Account?http://blog.equifax.com/credit/what-is-the-date-of-last-activity-on-my-credit-account/
http://blog.equifax.com/credit/what-is-the-date-of-last-activity-on-my-credit-account/#commentsMon, 20 Apr 2015 12:37:34 +0000http://blog.equifax.com/?p=12273We get comments all the time from Equifax Finance Blog readers about the concept of “date of last activity” as it pertains to their Equifax credit report.

What is the date of last activity?
The date of last activity is determined in different ways for different accounts, depending on the status of your account. Here’s how Equifax explains the difference:

For accounts paid as agreed with no balance, the date of last activity indicates the date of the last payment on the account. If you have a credit card that you pay off in full every month, the date of last activity will indicate the last date you paid the bill.

For accounts paid as agreed carrying a balance, the date of last activity is the most recent date associated with the account. If you have a student loan payment with several years remaining, the date of last activity may be the date you last paid or entered deferment.

For delinquent accounts or accounts in bankruptcy, the date of last activity indicates the date of first delinquency. The date of first delinquency is the month and year when the account became 30 days past due and led to some action on the part of the lender.

The date of last activity is most significant for delinquent accounts

In the first two cases mentioned above, the actual date of last activity holds little importance for your credit history because you paid as agreed. While a solid payment history may positively impact your credit score and creditworthiness, the date that you paid the bill doesn’t matter as long as your payments are consistently made on time.

For delinquent accounts, however, the date of last activity is essential because it indicates how long the negative account can remain on your credit report. Delinquency indicates a late payment made a full billing cycle—30 days—past the due date. Generally, a delinquent account remains on your credit report for seven years and 180 days from the date of first delinquency (10 years if the debt is discharged in bankruptcy). After that time period, the information will fall off your credit report—except in the state of New York, where it will remain only five years from the same date.

The date of first delinquency starts the clock that counts down the amount of time debt can be reported. If you have negative information on your credit report, such as a late payment or an account in collections, you should know the date of first delinquency because it will enable you to make sure it comes off your credit report after the time stipulated by law.

]]>http://blog.equifax.com/credit/what-is-the-date-of-last-activity-on-my-credit-account/feed/9Link Roundup: Nine Facts You Need to Know About Your Credit Scorehttp://blog.equifax.com/credit/link-roundup-nine-facts-you-need-to-know-about-your-credit-score/
http://blog.equifax.com/credit/link-roundup-nine-facts-you-need-to-know-about-your-credit-score/#commentsMon, 06 Apr 2015 18:47:33 +0000http://blog.equifax.com/?p=12261There’s a lot to know about your credit score. Understanding how your behavior impacts this important number is essential to maintaining a healthy credit file, and knowing how your credit score affects your financial life can help you make the right credit decisions for you.

Here are nine important facts you should know about your credit score.

1. Your credit score affects how much you pay to borrow money.
Your credit score is one of the main factors lenders use to determine whether to extend you credit. From a new credit card to a mortgage or auto loan, your credit score can mean the difference between an expensive loan and an affordable one.

2. Your credit score is impacted by your credit behavior.
Credit reporting agencies (CRAs) and other agencies, such as FICO, calculate your credit score based on your credit history and credit behavior. The information on your credit report comes from lenders that have extended you credit in the past. Credit grantors such as credit card companies, banks, credit unions, retailers, and auto and mortgage lenders report the information about your credit activity to the CRAs.

3. Your payment history is generally weighted most heavily when calculating your credit score.
Because your payment history is the largest factor impacting your credit score, it’s important to pay your bills on time. If you are getting behind, create a budget and a payment calendar. If you are paying down several debts at once, remember to make at least the minimum payments on all your loans. Late payments are one reason your credit score could drop.Read more: Five Reasons Your Credit Score Could Drop

4. The amount you charge on your credit cards is factored into your credit score.
Your debt-to-credit ratio, or the amount you owe in relation to the amount of credit available to you, is another important factor used to calculate your credit score. A high debt-to-credit ratio could impact your credit score because it indicates to lenders that you rely heavily on your credit accounts, even if you pay them in a timely manner.Read more: Five Tips for Maintaining an Optimal Debt-to-Credit Ratio
5. Your credit score can be impacted by new credit accounts.
Opening multiple credit accounts within a short timeframe can impact your credit score. The length of your credit history is factored into your credit score, and opening a new account shortens your average account age. A higher average account age shows lenders that you have a longer credit history and may be more capable of handling credit.

6. Your credit history remains on your credit report for years.
Information about your credit habits will remain on your credit report for an extended period of time. Certain positive information, such as a mortgage that is paid-as-agreed, will remain on your report for up to 10 years. Other information, such as a late payment that is 30 days past due, may remain on your report for up to seven years.Read more: How Long Does Information Stay on My Credit Report?

7. Good habits can help you build your credit history.
Make sure you pay your bills on time and handle your debt responsibly. If you do not qualify for a traditional line of credit due to a lower credit score, consider using a secured card or a retail store card. These cards are generally easier to get and may help you practice good credit behavior.

8. Having different kinds of accounts on your credit report may help you build credit.
Your credit score will reflect whether you have a history of handling diverse kinds of credit successfully. Approximately 15 percent of your credit score is based on the types of credit you use, such as department store charge cards, student or auto loans, and mortgages.Read more: Ten Things That Can Affect Your Credit Score
9. Requesting your own credit report won’t harm your credit score.
Monitoring your credit report and credit score will help you see how your credit behavior impacts your credit worthiness, so it can be helpful to review it regularly. Know that a request for your own credit results in a soft inquiry on your credit report. Soft inquiries are only visible to you and do not impact your credit score. Consumers are entitled to one free credit report every year from each of the three CRAs through AnnualCreditReport.com.Read more: Five Credit Habits to Avoid

Understanding your credit file is a big step toward managing your finances responsibly. While this list doesn’t cover everything you need to know about your credit file and your credit score, it’s a good place to start. You may want to regularly review your credit report and credit score (which you usually need to order separately) so you can keep track of how your credit behavior looks to lenders.

Thanks to everyone who sent us their questions. Here’s what a few of our followers wanted to know:

@AaronHorak asks: @EFXFinanceBlog, are student loans forgiven if you die? My understanding is that if it’s a federal loan it is, but not if it’s a private loan.

Answer: According to the U.S. Department of Education, if you, the borrower, die, then your federal student loans will be discharged. For federal Parent Loans for Undergraduate Students (PLUS loans)—often used by parents on behalf of their children—if either the borrower or the benefactor dies, the loan will be discharged.

For private student loans, it depends on the lender’s policies. For example, Sallie Mae has a death or permanent disability policy stating that if a student borrower dies or becomes permanently and totally disabled, Sallie Mae will waive the remaining loan payments.
You can check with your private lender to find out if they offer any death discharge protections.

Answer: While everyone should apply for financial aid to see if they can receive it, according to the U.S. Department of Education, there are a few basic requirements that may disqualify a potential borrower from receiving federal student loans:

You did not pass high school. You need to have a high school diploma, GED or have completed a state-approved home school education. Depending on the year you enrolled in college, you may show that you’re qualified by taking a test, completing some coursework, or meeting federally approved standards that your state establishes.

You were not accepted into a college, university, or certificate program.

You did not demonstrate financial need, which is calculated as the difference between the cost of attendance and your expected family contribution.

You are male and did not register with the Selective Service.

You do not have a valid Social Security number (unless you are from the Republic of Marshall Islands, Federated States of Micronesia, or the Republic of Palau).

You did not fill out the Free Application for Federal Student Aid (FAFSA).

You refused to sign certain statements on the FAFSA stating that you are not in default on a federal student loan and do not owe a refund on a federal grant, and that you will use federal student aid for educational purposes.

You are not a U.S. citizen, U.S. national, or an eligible noncitizen, including those who have a green card, an arrival-departure record, a battered immigrant states, or a T-VISA.

When you fill out the FAFSA, you are applying for financial aid for a specific year. So, even if you did not receive financial aid this year, you should be sure to fill out the FAFSA again next year. If you are denied financial aid, your school will give you a denial letter, which you may have the option to appeal depending on the circumstances.

Answer: The short answer is that the FAFSA takes into account the information of the “custodial parent,” which is the parent with whom the student lived with most during the previous year.

If a student lived with both parents equally, include information for the parent who provides the most financial support. There are several different criteria that are weighed on the FAFSA. For more in-depth information on which parent’s information to include, visit the Studentaid.ed.gov website.

Answer: The FAFSA asks for financial information including tax forms; either your tax forms if you are independent, or your parents if you are a dependent.

The FAFSA comes out in early January and often students want to file it as early as possible. You do not need to have filed your taxes by the time you fill out your FAFSA.

If you haven’t done your taxes, you will need to estimate your income (or your parents’ income, if you are dependent). You can base your estimates on last year’s tax return or, if your income has drastically changed, there are tools to help you estimate your income.

If you have already done your taxes, you can use the IRS data retrieval tool to help fill out your FAFSA.

Room and board can be a significant expense for college students. The College Board estimates that the average cost for on-campus room and board amounted to around $9,000 for state schools and $11,000 for private schools in the 2014-2015 school year.

You should try to figure out a net cost for each school, in order to narrow down your search to the most affordable schools. Be sure to include tuition, fees, room and board, books, supplies and transportation into your total cost. Then you should subtract the grant and scholarship amounts awarded to you from the total cost to get your net cost.

Compare the net costs for the schools you are considering: that’s the amount you’ll have to pay yourself, either from your earnings during school or with student loans, which you will have to pay back after you graduate.

Financial aid includes grants, scholarships and federal student loan offers. You should be sure you understand the obligations of federal student loans and interest payments before you accept. You may be offered more financial aid than necessary; make sure you only borrow what you need.

Please share your own questions or experiences with financial aid in the comments, and thanks to everyone who participated in our #EFXQandA on Twitter. You can follow us @EFXFinanceBlog.

]]>http://blog.equifax.com/credit/financial-aid-awareness-month-your-financial-aid-questions-answered/feed/0How You Can Help Protect Against Identity Thefthttp://blog.equifax.com/credit/how-you-can-help-protect-against-identity-theft/
http://blog.equifax.com/credit/how-you-can-help-protect-against-identity-theft/#commentsFri, 06 Feb 2015 05:10:20 +0000http://blog.equifax.com/?p=11828Every two seconds, someone in America becomes a victim of identity theft. Although it’s not entirely avoidable, there are steps you can take to help better protect yourself and your family. Consider these steps as part of your ID protection plan.
]]>This is the third in a three-part series on the emotional toll of identity theft. Click here to read articles number one and two.

Every two seconds, someone in America becomes the victim of identity theft, according to Javelin Strategy and Research. It’s the number one complaint reported to the Federal Trade Commission (FTC), according to the agency’s 2013 Consumer Sentinel Report.

Although identity theft isn’t 100 percent avoidable, there are a number of steps you can take to help protect yourself and your family.

One of the biggest emotional challenges many victims face is a loss of control, says Nancy Molitor, PhD, a clinical psychologist based in Wilmette, Illinois. That’s why it’s important to have a plan in place ahead of time in case you become a victim.

“The best thing to do is be proactive,” she says. “Make a list now and consider ‘What would I do?’ if you became a victim. Knowledge is key.”

Keep birth certificates, Social Security cards, and other personal documents in a lockbox in your home. Make sure they are put away when someone is working in your home or even if you have a roommate.

When disposing of documents use a diagonal shredder, which makes documents harder to piece together than a traditional shredder does.

Don’t leave outgoing bills, government forms, or tax forms in a mailbox. Take them directly to the post office. Have your mail held by the post office while on vacation.

Don’t put your driver’s license number on your personal checks. Consider writing just your first initial and last name instead of your full name.

Don’t toss credit card receipts in public places.

Install anti-virus software, anti-malware software, and a firewall on your computer and keep the programs up to date. A tech-savvy identity thief can use a virus to get personal information from your computer without your knowledge.

Use unique passwords that are different for each website.

Don’t put your birthdate or other sensitive information on your social media accounts, even just the month and day. A thief can figure out the year you were born by looking at your posts.

Consider a credit monitoring and identity theft protection product, such as Equifax Complete™ , which will alert you to changes in your credit file such as a newly opened account. Equifax Complete is available for you as well as your family (two adults and up to four minor children).

]]>http://blog.equifax.com/credit/how-you-can-help-protect-against-identity-theft/feed/612 Steps Toward Identity Theft Recoveryhttp://blog.equifax.com/credit/12-steps-toward-identity-theft-recovery/
http://blog.equifax.com/credit/12-steps-toward-identity-theft-recovery/#commentsFri, 06 Feb 2015 05:05:51 +0000http://blog.equifax.com/?p=11839This is the second in a three-part series on the emotional toll of identity theft. To read the first article, please click here.

If you are one of 13.1 million Americans who was a victim of identity theft in 2013, you may be dealing with a number of ramifications. Here are 12 ways you can deal with both the financial and emotional fallout that comes as a result of identity theft.

1. Check your credit report with all three credit reporting agencies. Scan it for some of the following warning signs of identity theft:

An account that is not yours or activity on accounts you haven’t used recently.

Credit inquiries you did not authorize. Unauthorized entries, other than pre-screened credit offers, could be a sign that a thief has requested credit in your name.

Review any public records for liens, judgments, or collections you are unfamiliar with.

2. Close fraudulent accounts.

3. Keep checking your credit report regularly. It can take months after identity theft for a new account to show up on your credit report. You are entitled to a free credit report each year from each of the three national credit reporting agencies through AnnualCreditReport.com or 877-322-828, the only authorized source under federal law.

4. Place a fraud alert by contacting any one of the three credit reporting agencies. Equifax (as well as the other agencies) will automatically forward this request to the other two agencies. Contact each one separately to place a security freeze on your credit files.

5. File a police report with whichever police or sheriff’s department has jurisdiction over your case.

6. Report the crime to the Federal Trade Commission (FTC) using its identity theft hotline at 877-438-4338.

7. Make a plan. “I always tell people: pause but don’t panic,” says Nancy Molitor, PhD, a clinical psychologist based in Wilmette, Illinois. “Try to figure out exactly why you’re stressed. The worst thing you can do is to get overwhelmed and think worst-case scenario. Be grounded, stay in the present, and make a plan for yourself.”

8. Build a support system. “I really encourage people to practice extreme care, making sure they’re taking care of themselves in whatever way works for them, including surrounding themselves with supportive people,” says Diane Turner, a licensed clinical social worker and certified life coach based in Chicago, and Tucson, Arizona.

For some people, family members can make a great support system as you work toward restoring your finances. For others, family members are not the best people to turn to, Turner says. If this is the case for you, connect with a religious leader or friends to make sure you’re getting the support you need.

9. Keep a detailed journal. Feeling in control of your life can go a long way toward making you feel better. Keep records of every call you make, every letter you receive, and every day you take action toward resolving your claim.

10. Contact a victims’ assistance group. There are victims’ assistance groups out there just for people who have been affected by identity theft. They can lead you through the process of fixing the issue and offer references for further support.

11. Consider getting professional help. “If you are someone who has experienced identity theft, do not shame yourself or in any way tell yourself you should be past it if you’re still experiencing emotional symptoms,” says Turner. “It’s important for you to pay attention to your mental state and seek out counsel if you need it. Talk to your clergy, see a life coach or a therapist; see a professional who can help you on that healing path.”

12. Come to terms with the crime. Like any form of trauma, there isn’t a set time for a victim to be able to move forward after falling prey to an identity thief. The way to move forward, Turner says, is to accept the challenge that the crime has presented, but recognize the power and ability to move forward.

“It really is such a tremendous invasion of privacy,” says Turner. “What people really have to do is learn to reestablish themselves separately from their identity.”

]]>http://blog.equifax.com/credit/12-steps-toward-identity-theft-recovery/feed/2Losing Control: The Emotional Toll of Identity Thefthttp://blog.equifax.com/credit/losing-control-the-emotional-toll-of-identity-theft/
http://blog.equifax.com/credit/losing-control-the-emotional-toll-of-identity-theft/#commentsFri, 06 Feb 2015 05:03:33 +0000http://blog.equifax.com/?p=11830This is the first article in a series of three on the emotional toll identity theft can play in a victim’s life.

Identity theft is largely an invisible crime; someone quietly steals your identity and uses it for financial gain. Yet, the impact on victims is real. Many lose money and time, but there’s another cost that’s not so easy to quantify – the emotional toll. As identity theft increases — there were 13.1 million victims of identity fraud in the United States in 2013 — psychologists and therapists are beginning to examine the emotional fallout for victims.

Many identity theft victims suffer financial stress and deal with emotional effects similar to those experienced by victims of violent crimes, ranging from anxiety to emotional volatility.

“The financial impact of identity theft can be lasting, but so too can the emotional toll as victims fight to regain their identities,” says Trey Loughran, president of Equifax Personal Solutions. “It is important to make consumers aware of the emotional effects of identity theft and tips for overcoming them. Armed with the right knowledge, victims can take control with minimal financial and emotional damage.”

Identity theft victims often show emotions “much the way a trauma survivor would respond or somebody who was a victim of a different kind of crime, such as a home invasion or assault,” according to Diane Turner, a licensed clinical social worker and certified life coach based in Chicago, Illinois, and Tucson, Arizona.

Turner says victims often experience emotional effects, including signs of grief similar to depression, heightened anxiety, loss of confidence in areas where they typically had confidence, sleeplessness, emotional volatility, difficulty eating, self-medicating with alcohol or food, and loss of motivation.

The emotional effects of identity theft can include:

Stress. From filing police reports to reestablishing credit, it can take some time for victims to get finances back in order. Those who already have financial hardship or are still recovering from the economic recession might feel extra stress due to financial strain.

Self-blame. If a victim feels his or her identity was stolen through carelessness or a mistake on the victim’s part, the victim may be embarrassed and blame himself or herself for the crime having taken place. Some victims are hesitant to seek help because they believe their own actions or inactions may have contributed to the crime.

Vulnerability. Identity theft is an invasive crime and for some victims, the worst part is they can never put a name or a face to the thief. “Trying to identify who the person was gives us this false sense of control,” Turner says. “It’s kind of an illusion, but it does make us feel better.”

Isolation. The anonymity of the crime can also lead victims to feel isolated as they search for the person who committed the crime. Axton Betz-Hamilton of Charleston, Illinois, and her family members were victims of identity theft when she was a child. For years, they distanced themselves from friends and other family members who could have been the culprits. Although she eventually found out who stole her identity, she lived for a long time with a mentality to suspect everyone. “Every time I went in a store or had a group interaction, I wondered if the person who stole my identity was there.”

Family strife. Javelin Strategy and Research reports that most identity theft is committed by family members or friends. Everything from gambling addictions to unmanageable debt can lead someone to target a relative and steal his or her identity. When children are victims, it’s often the parents, foster parents, or other family members who are the culprits.

Betrayal by someone they love and trust can be emotionally devastating for victims. They may not report the crime to law enforcement in an effort to protect a loved one. There’s often pressure to keep the matter in the family, leaving some victims to suffer alone and recover financially on their own.

“Think of the assault—the trust that’s broken when someone does that,” says Turner. “If the thieves are a group of people who live in a foreign country and are complete strangers and it’s totally random, in a way it’s almost easier to recover from that. If you find out that it’s somebody who’s close to you, that’s a whole different ballgame.”

]]>http://blog.equifax.com/credit/losing-control-the-emotional-toll-of-identity-theft/feed/0How to Help Prevent Tax Identity Thefthttp://blog.equifax.com/tax/how-to-help-prevent-tax-identity-theft/
http://blog.equifax.com/tax/how-to-help-prevent-tax-identity-theft/#commentsMon, 26 Jan 2015 17:56:10 +0000http://blog.equifax.com/?p=11789Tax season is in full swing. Unfortunately, it’s prime time for identity thieves who use stolen Social Security numbers to file taxes fraudulently and claim other people’s refunds. Learn what you can do to help keep yourself from becoming a victim.
]]>The Federal Trade Commission (FTC) is kicking off 2015 with Tax Identity Theft Awareness week, January 26 to 30. The purpose of this week is to educate people about identity theft—which could be anyone with a Social Security number (SSN).

More than 1.6 million people were affected by tax identity theft in 2013. The IRS estimates that it paid out $5 billion to identity thieves in the 2013 filling season and prevented an additional $24 billion in fraudulent refunds from being processed.

Tax identity theft occurs when someone uses your SSN to file a tax return or to obtain a job and report earnings under your SSN. Unlike other types of identity theft, you can’t discover tax identity theft from your bank transactions or credit report. Often consumers learn they’ve been a victim when the IRS refuses to issue a refund or requests money for income that you didn’t earn.

How does tax identity theft happen?

In order to commit tax identity theft, the criminal must have access to your SSN or other pieces of your personal information, such as your full name or date of birth.

Thieves can obtain this information in a number of ways, including from medical records, either through a data breach or from access by an employee at a medical facility; from your wallet or passport if it falls into the wrong hands; from your mail if you throw away sensitive documents without shredding them or send your personal information in the mail; through physical theft; or through familiar fraud, where a family member or friend steals your sensitive personal information.

Once a thief has access to your information, he or she can file a tax return in order to receive your tax refund.

What you can do to protect yourself

Despite the variety of ways in which a thief can obtain your personal information, there are things you can do to help protect against identity theft.

1. Protect your SSN and other personal information.

It may seem like common sense, but you should never give out your SSN to someone you don’t know. You should also be wary of giving it to a business, such as your doctor’s office. Ask if there is some other identifier you can use, such as the last four digits of your SSN or a separate identification number. In addition, don’t carry your Social Security card in your wallet.

When it comes to personal information, you should always be careful of how you dispose of old paperwork and sensitive documents, such as bills, medical records, and tax information. According to the IRS, the onset of tax season brings with it an increase number in phone scams, during which a person may call you and try to convince you that you have a refund due, or may try to persuade you into sharing personal information. These callers may sound convincing and may know a lot about you, but you should never give personal information over the phone.

For detailed information about the methods in which the IRS may contact you or for more information about phone scams, please go to http://www.irs.gov/uac/Tax-Scams-Consumer-Alerts

2. File your taxes early.
If the IRS receives two sets of tax forms, it will typically flag the second return. By filing as early as possible in the tax season, you can make sure you’re filing—and getting your refund—before a tax fraudster. According to the IRS, the typical tax identity theft case takes about 180 days to resolve.

3. Choose your tax preparer wisely
Tax preparers may be in a more advantageous position to commit tax identity theft than others because they often handle personal information and are more familiar with IRS processes. Make sure you conduct a thorough review of your tax preparer before you entrust him or her with your personal information. The IRS offers some tips for choosing a tax preparer here.

4. Check your credit report
Once a thief has your personal information, he or she can open credit accounts in your name in addition to committing tax identity theft. Monitoring your credit report can alert you to other types of identity theft, such as a thief applying for credit cards or mortgages in your name. Consumers are entitled to one free credit report from each of the three credit reporting agencies every 12 months through AnnualCreditReport.com. If you want to check your credit on a regular basis, you may also want to consider purchasing a credit monitoring product. If someone uses your SSN to commit tax identity theft, you’ll get a notice or letter from the IRS telling you that more than one return was filed for you or that you received wages that you didn’t report. If you get a letter like this, contact the FTC and the IRS as quickly as possible. Resolving identity theft can take years, and that could give the identity thief several opportunities to file in your name.

]]>http://blog.equifax.com/tax/how-to-help-prevent-tax-identity-theft/feed/3Quiz: How Does Your Credit Behavior Impact Your Credit Score?http://blog.equifax.com/credit/quiz-how-does-your-credit-behavior-impact-your-credit-score/
http://blog.equifax.com/credit/quiz-how-does-your-credit-behavior-impact-your-credit-score/#commentsTue, 20 Jan 2015 12:02:13 +0000http://blog.equifax.com/?p=11712Have you ever missed a credit card payment and wondered how—and why—it will impact your credit score? Take this quiz to find out how the way you’re using credit could be impacting your credit score.
]]>Your credit history can play a vital role in your financial life because it’s used to calculate your credit score, which is a big factor that lenders consider when deciding whether to lend you money and at what rate. Your credit score can impact everything from getting a car loan to buying a home, so it’s important to understand how your credit behavior can affect your credit score. Take the quiz below to see how well you understand your credit score.

Question 1: You just made a $1,500 purchase on your only credit card, which has a $2,000 limit. This will impact your credit score because:

Answer: A. This purchase will change your credit utilization ratio, which is the amount of debt you are carrying compared with your available credit. It could impact your credit score because your credit utilization ratio accounts for 30 percent of your Equifax credit score. Ideally, you’ll use less than 35 percent of your available credit limit, or less than $700 on a card with a $2,000 limit.

Question 2: You pull your credit score and credit report only to realize that you have missed payments on your credit card for three consecutive months. This will impact your credit score because:

A. The interest is accruing on your credit card.
B. Your credit report will reflect that you pulled your own credit score.
C. Your credit report will reflect late payments.

Answer: C. A late payment will be reflected on your credit report, and your payment history accounts for 35 percent of your Equifax credit score. The credit reporting agencies (CRAs) look at how late your payments are, how much is owed, and how recently and how often you missed a payment. It’s important to pay every bill on time because one late payment can affect your credit score for up to two years. It also will remain on your credit report for up to seven years from the date of last activity or the date the account went 30 days late.

A high interest rate will impact your wallet but not your credit score. Pulling your own credit report will be reflected on your credit report but also will not have an impact on your credit score.

Question 3: You still have your very first credit card from college. You don’t use it very often, so you decide to pay off the balance and close the account. This will impact your credit score because:

A. The length of your credit history will change.
B. The balance is paid off.
C. You’re paying less in interest because you have one fewer card.

Answer: A. The longer you have had a credit account open and active, the longer your credit history will be. Lenders like to see that you’ve been able to handle credit responsibly over a long period of time. If you close the oldest account that you have, the length of your credit history, which accounts for 5 percent to 7 percent of your credit score, will change.

Question 4: You recently bought a house, and while you are shopping for new furniture, you decide to apply for store cards with several different retailers in order to get the discounts. This could impact your credit score because:

A. You will have more than one type of credit.
B. You will have opened several new lines of credit.
C. You will now be paying several monthly bills.

Answer: B. Your credit score reflects how much new credit you have as compared with the total number of tradelines in your credit file. New credit accounts for 10 percent to 12 percent of your credit score. While holding different types of credit can have a positive impact on your credit score, you may want to avoid opening several new accounts at once. New accounts can add recent inquiries to your credit file, which can impact your credit score for the next year. Opening new accounts can also reduce the average length of your credit history.

Your credit behavior directly impacts your credit score, but you might not be clear on why or how. Educating yourself on how credit works could help you take the right steps toward a better credit history.